Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : KERM'S KORNER -- Ignore unavailable to you. Want to Upgrade?

To: Herb Duncan who wrote (11083)	6/3/1998 8:49:00 AM
From: Herb Duncan	Read Replies (2) \| Respond to of 15196

EARNINGS / Tusk First Quarter 1998 TSE SYMBOL: TKE JUNE 2, 1998 CALGARY, ALBERTA--TUSK Energy Inc. announces that during the quarterly period ended March 31, 1998 production averaged 552 boepd, a 16 percent decrease from the 658 boepd average of the first quarter 1997. Oil prices, which averaged over $8.00 per barrel lower than in the first quarter of 1997 and lower average daily production were the main cause in the drop in cash flow to $326,310 for the quarter compared to $833,138 for the three month period ended March 31, 1997. Cash flow per share was $0.04 per share compared to $0.11 per share last year. Capital spending during the quarter was $992,232 compared to $384,047 one year earlier. As of the end of the first quarter long term debt was $4,299,747. /T/ Profit Cash First per Cash Flow Net Quarter Profit share Flow per share Revenue ------- ------ ----- ---- --------- ------- 1998 $134,010 $ 0.02 $326,310 $ 0.04 $ 886,005 1997 $267,538 $ 0.03 $833,138 $ 0.11 $1,240,713 /T/ While first quarter results were disappointing compared to those of the prior year, the second quarter started well for the company as a consequence of a successful well at Meekwap. During the month of April average production was 865 boepd, annualized cash flow was $3.6 million and annualized cash flow per share was $0.40. TUSK's primary producing area continued to be Meekwap, Alberta which represented 80 percent of TUSK's overall production during the quarter. TUSK operates over 90 percent of its net production. During the quarter TUSK participated in the drilling of 3 wells resulting in one abandoned well (0.20 net) at Pine Creek and a successful oil well at Meekwap (0.17 net). A deep exploratory test at Strachan (TUSK 10 percent BPO, 30 percent APO) spudded in mid-February and reached intermediate casing depth of 3,420 metres by the end of the quarter. The Strachan well reached total depth of more than 4,300 metres in late April. The Meekwap well went on production in April and has averaged 1,800 boepd (315 boepd net) with no water production. Drilling of a second well at Meekwap (0.17 net) commenced on May 31, 1998.

To: Herb Duncan who wrote (11083)	6/3/1998 2:31:00 PM
From: SofaSpud	Respond to of 15196

FINANCING / Petrolex Rights Offering PETROLEX ENERGY CORPORATION ANNOUNCES UNDERWRITING TO RIGHTS OFFERING SECURED VANCOUVER, June 3 /CNW/ - Petrolex Energy Corporation Trading Symbol: PXV - TV Petrolex Energy Corporation (the ''Company'') further to its news release of May 19, 1998, is pleased to announce that it has entered into a Stand-by Guarantee Agreement (the ''Agreement'') with its majority shareholder, Coplex Resources N.L. (''Coplex'') whereby Coplex has agreed to underwrite the Company's Shareholder Rights Offering. Pursuant to the Agreement, Coplex will take up all common shares not subscribed for by its shareholders pursuant to the exercise of initial and second stage rights at a price of $0.16 per common share thereby ensuring the Company gross proceeds from the Rights Offering of $2,138,933.20. The proceeds from the Rights Offering will be applied to the continued development of the Rubiales oilfield and to general working capital. As announced in the Company's news release of May 19, 1998, pursuant to the Rights Offering each existing shareholder is entitled to one Right for each common share held, with four Rights entitling such shareholder to acquire one additional common share at a price of $0.16 per share. The Rights Offering is expected to close by the end of July 1998. On behalf of the Board of Directors PETROLEX ENERGY CORPORATION ------------------------------------ Stephen S. James, Vice-President Corporate Counsel The Vancouver Stock Exchange has neither approved nor disapproved the information contained herein. %SEDAR: 00004814E -30- For further information: Stephen S. James, Vice-President Corporate Counsel, Petrolex Energy Corporation, PO Box 49194, Suite 2614 - 1055 Dunsmuir Street, Vancouver, BC, V7X 1L3, Tel (604) 689-4498, Fax (604) 684-4473, E-mail pxv@petrolex.com; or Keith R. Fellowes, President & C.E.O., Petrolex Energy Corporation, Suite 1125 - 10777 Westheimer, Houston, Texas, 77042-3462, USA, Tel (713) 782-7799, Fax (713) 782-2626